OK, now the confusion sets in. I believe it has become apparent that government/Fed dysfunction is peaking. Maybe the BLS BS job stuffing is now running counter the Fed? I mean, like, who's agenda is most important, the Fed's or Obummer's? Do we want QE or a better jobs print for sentiment going into the election? I got some news for the Manchurian Manbat, you ain't bigger than the Fed or the market. Most powerful man in the world my ass. You have disgraced that moniker (let's not forget to give W a big assist there) and are no more than a puppet to the banksters and special interests that control your destiny.
So WTF happens to price now as the markets with QE all priced in and veins pumped full of hopium sit all perked up like ...(I better not go there)? LOL, I give up? Can they have it both ways? I don't think so. In a market where the worst news is the best news how can good news be good anymore? If you are a bit confused, you should be. In order to understand the markets today, you first have to remember that nothing is real anymore. Then you have to take that leap into never never land where unicorns and pixies and only happy thoughts exist. A land where nothing bad can happen and the government and Fed will always make sure your every need is taken care of and bad things can never happen. Then invest accordingly (whatever that means).
Go figure, they hit a good jobs print on the cusp of a cliff. Who the hell wants what? All we need now is for this market to go bi-polar on us. Good friggin luck later this month when Greece defaults (for like the 5th time) and the US government runs out of money again and has to start raiding its pension system (for the third time in as many years).
All the charts say crash. As I always preach, patience and scalps with protection. As soon as you get too lopsided they are gonna whip yo ass. SPX Daily has been showing al the signs of an embedded blow off movement. Of course the kiss of death has been to even try to think that the impossible is, well, impossible. Remember, the markets are rigged and price will go where they want it to. This daily chart has looked pretty ill for the past couple of weeks and my BTFD/STFR chart says that the storm is here.
Minis Daily - Price here has wedged up into major resistance.
Patience people, the fall should be here, but you never know in these totally controlled markets. I issued a warning yesterday that we may be entering a period of unprecedented price manipulation. I'm talking about even more blatant and open than in the past. I'm talking about open intervention like they have basically promised. This mornings action is a good example of what may be to come as markets move up against all odds. Keep those trades short, don't get too one sided mentally and call the Trojan Man cause protection is always required when trading this diseased market.
Have a great weekend!
GL and GB!